In the lead up to the Ethereum Merge, traders appear to be in the accumulation phase. While a section of Ethereum traders anticipate a price drop ahead of the Merge, the buying spree continues as more Ethereum validators emerge. The upcoming Merge will mark a shift of the network from proof of work to the proof of stake mechanism. Meanwhile, the Ethereum (ETH) price dropped massively in the last few days.
Ethereum Validator Pool In The Making
As the price dropped below $1,500, ETH traders seem to be preparing for post Merge activities. In the new consensus mechanism, traders will need a minimum of 32 ETH to activate their own validator. In this context, Glassnode data on number of Ethereum addresses holding over 32 ETH looks interesting. The number of such addresses is currently the highest in an year and a half.
“Ethereum number of addresses holding 32+ ETH just hit a 18 month high.”
In the proof of stake mechanism, miners are replaced with validators. Validators stake a pre-determined amount of 32 ETH to get a chance to publish a block. Hence, the higher the number of addresses with over 32 ETH now, the higher the chances of more validators post Merge. The ETH price, on the other side, is showing high volatility these days. From a high of over $1,700 just few days ago, the cryptocurrency reached a low of below $1,440. As of writing, ETH price stands at $1,482, down nearly 3.50% in the last 24 hours, according to price tracker CoinMarketCap. Earlier this month, the cryptocurrency reached a high of over $2,000.
ETH Whale Accumulation
The much anticipated event in the crypto ecosystem, the Ethereum Merge, is set to happen around September 15. With increasing whale accumulation of Ethereum before the shift to proof of stake, adoption for Ethereum 2.0 would be easier. It remains to be seen in the near future post Merge, if the ETH whales would try to pull down the price to accumulate more.